Reliance Retail Ventures Limited (RRVL) on Friday announced that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 4,967 crore into the retail arm of Mukesh Ambani-led Reliance Industries Ltd. This investment values RRVL at a pre-money equity value of Rs 8.38 lakh crore, which makes it among the top four companies by equity value in the country.
This investment by ADIA will translate into an equity stake of 0.59% in RRVL on a fully-diluted basis.
Isha Mukesh Ambani, Executive Director, Reliance Retail Ventures Limited, said: “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited. Their long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving transformation of the Indian retail sector. ADIA’s investment in RRVL is a further testament to their belief in the
Indian economy and our business fundamentals, strategy and execution capabilities.”
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department, ADIA, said: “Reliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace. This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end-markets. We are pleased to partner with the Reliance Group, and increase our exposure to India’s dynamic and fast-growing consumer sector.”
Reuters had reported last month that Reliance was in advanced talks with global investors to raise around $2.5 billion ahead of a potential stock market listing.
RRVL, through its subsidiaries and associates, operates India’s largest, fastest growing, and most profitable retail business serving 267 million loyalty customers with an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
Morgan Stanley acted as financial advisor to Reliance Retail Ventures Limited and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
